4(i). A private company was set up with a total of 190 members. Later, the Board decided to allot ESOP to about 36 of the best performing employees. After some time, 15 of these employees left the company. Legal advisor of the company has suggested that the company needs to convert itself into a 'Public Ltd Company'. Comment on the legality of this advice and give your suggestions.

4 (ii) A Ltd has invested in 51% of the Paid- Up- Capital of LMN Ltd which in turn has invested 26% in the Paid- Up- Capital of X Ltd. What kind of relationship has come about between these companies? What will be the legal obligations of each of the companies with regard to disclosures?

Does the deposit of more than 50% of the Equity shares by a company with a financial institution to secure the interests of its debenture-holders bring about the relationship of 'group companies?